Note:

If all the conditions above are met, assess the penalty as follows:

Determine the number of months or fraction of month late.

If the number of shareholders is not present assume 1 shareholder is present.

Compute the penalty by multiplying the number of months, by the number of shareholders, by the base penalty amount.

Refer to IRM 20.1.2.6, Failure to File S Corporation Return—IRC 6699, or IRM 20.1.2.6.4, Procedures for Assessment or Abatement Prior to 01/01/2022, for information on penalty assessment and computation.

The missing or incomplete information penalty is assessed on Form 1065 with a TC 246 PRN 723 with IRNs 851, 852 and 853.

Return is MFT 06

Number of partners is 2 or more

Number of months

Missing Schedule Code of 33-39, 45-45, and 49-52 indicating the following:

33 - Missing Schedules K-1

34 - Missing Balance Sheet

35 - Missing K-1 TINs (5 or more)

36 - Missing Schedules K-1 and Balance Sheet

37 - Missing Schedule K-1s and K-1 TINs

38 - Missing Balance Sheet and K-1 TINs

39 - Missing K-1s, Balance Sheet and K-1 TINs

45 - Missing Schedules K

46 - Missing Schedules K and K-1s

47 - Missing Schedules K and L (Balance Sheet)

49 - Missing Schedules K, K-1s and Balance Sheet

50 - Missing Schedule K, K-1 and K-1 TINs

51 - Missing Schedule K, Balance Sheet and K-1 Tins

52 - Missing Schedule K, K-1, Balance Sheet and K-1 Tins (5 or more)

The table below shows the PRN and IRNs needed to assess the Missing Information penalty using PRN 723 under IRC 6698/6699 for Form 1065:

Form/MFT

PRN 723

IRN 851

IRN 852

IRN 853

1065 (MFT 06)

PRN 723 lists the Total Penalty Amount

Number of Partners